Name: BorgWarner Has Really High Hopes for 2016
Uploaded: 2016-03-29
Duration: 3 min 47 s
Description: CEO James Verrier expects double-digit sales growth.

James, you've said that you expect double digits sales growth for Borgwarner in 2016, so sounds like you have a very upbeat on car and trucks sales for this year. Yeah, we're heading for a great year, yeah, 2016 will be double digits growth. That's driven by two things, one the acquisition we completed of Remy last year. And also strong organic growth, that's mid single digit growth so. But in order for you to have double digit sales growth that means people have to be buying more cars. So are you, how optimistic or neutral are you about overall car and truck sales? Yeah, first of all we say it's a growth industry We still see growth in the industry. If I quickly scan the world, we see lower growth, 1 or 2 % in the United States or North America. A similar environment in Europe. And we see a little better growth, 3, 4, 5 % range in China. But on top of that for [ UNKNOWN ], what we are finding Is, adoption of our product is much faster than the market growth. And the reason for that is, customers have to make fuel economy standards, new emission standards, so they need Bargwanna type products. So we get superior growth vs. the absolute growth market. But I think the industry is healthy. I think it's growing and I think it's robust. What about consumer buying? What can you tell? Are they as enthusiastic about getting a new vehicle as they were, let's say, last year? I think generally consumers' confidence or sentiment is good, is good globally, actually. We're not living off incentives, and discounts, and subsidies, and all of those things. I think there's a robust Desire and drive for people to buy vehicles, which is good. Let's talk a little bit about what's going on around the world because 75 % of your sales are from outside of the United States. Starting with China, how bad is the slowdown there? I keep reminding folks that whether it's auto sales or GDP China is still a mid- single digit growth economy. A mid- single digit with the amount of the size of that country and the size of the vehicles is still a very, very good market. It's certainly slower than one or two years ago than what we'd anticipated. But it's still a healthy 4 %, 5 %, 6 % growth environment. And I think that's a great environment. I think the other thing people forget with China That growth rate that I talked about is off a base of over 20 million vehicles a year, so when we're getting 4 or 5 % on a 20 million- plus base, that's meaningful growth in China. Yes, there's a slowdown, I think there's a little bit of natural skepticism in the economy But I'm more in the upside [ UNKNOWN ] down sight for China. I'm pretty up beat on China. What about Europe? It's a low growth environment. It's you're 1 or 2 % growth environment and if you look Look at Europe over the last decade, or even 15 or 20 years, that is typically what it is. It doesn't have the dramatic cycles of a North America. It tends to bounce along at a much more stable rate. Let's talk a little bit about the US. There are many bearish forecasts for the US economy. There are even warnings about a recession. What are your thoughts about a recession? At this stage I'm not. CNET but what I would say to you for us as a business. We're very vigilant. We, the signs are more not good than good frankly speaking. So we've already, we pay a lot of attention. We're very vigilant that that could happen. I think these many data points in US that keep us all a little bit edgy And I think we all have to be ready for that, and we will be ready for that if it comes. [ BLANK_AUDIO ]

CEO James Verrier expects double-digit sales growth.